Article: Economy fears after interest rise.

A leading economist has warned the hike in interest rates could have serious implications for Lancashire economy.

Economic committee chairman Sam Jones, of the North and Western Lancashire Chamber of Commerce, fears Thursday's 0.25% hike in rates will stop businesses in the county investing in their future.

The widely-expected decision, which saw the Bank of England increase rates to 5% at midday, will see pressure increase on homeowners with variable mortgage rates and people with heavy debts.

It has been blasted as "premature" by manufacturers who are now fearful there will be another hike at the start of 2007.

Mr Jones said: "If ...

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